Correlation Between Citigroup and Mobimo Hldg
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mobimo Hldg at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Mobimo Hldg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mobimo Hldg, you can compare the effects of market volatilities on Citigroup and Mobimo Hldg and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Mobimo Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mobimo Hldg.
Diversification Opportunities for Citigroup and Mobimo Hldg
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Mobimo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mobimo Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobimo Hldg and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Mobimo Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobimo Hldg has no effect on the direction of Citigroup i.e., Citigroup and Mobimo Hldg go up and down completely randomly.
Pair Corralation between Citigroup and Mobimo Hldg
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.34 times more return on investment than Mobimo Hldg. However, Citigroup is 3.34 times more volatile than Mobimo Hldg. It trades about 0.24 of its potential returns per unit of risk. Mobimo Hldg is currently generating about 0.18 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Mobimo Hldg
Performance |
| Timeline |
| Citigroup |
| Mobimo Hldg |
Citigroup and Mobimo Hldg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mobimo Hldg
The main advantage of trading using opposite Citigroup and Mobimo Hldg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mobimo Hldg can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mobimo Hldg will offset losses from the drop in Mobimo Hldg's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Mobimo Hldg vs. PSP Swiss Property | Mobimo Hldg vs. Allreal Holding | Mobimo Hldg vs. Swiss Prime Site | Mobimo Hldg vs. Helvetia Holding AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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